The municipality of Kirchheim will have to take out around 80 million euros in loans by 2026 to finance everything it intends to do.
Kirchheim – The municipality of Kirchheim wants to take out around 80 million euros in loans by 2026, 9.2 million euros of new credit and a withdrawal of 14 million from the reserve are planned for next year. There is no other way to finance the planned (major) projects.
That’s where the money comes from, that’s where it goes
Bigger Earnings: Construction subsidy for children’s home II: EUR 2.7 million; State Horticultural Exhibition Grant: $3 million; Grant for the transformation of the “Kirchheimer Oval”: 3 million; Urban funding for housing: 3.1 million
Major expenses: New Town Hall and City Hall: 15 million; Loan to LGS: 6.5 million; Purchase of a condominium: 4.3 million; Children’s Home II: 4 million; Conversion of the “Kirchheimer Oval”: 2 million; LED conversion: 1.3 million; IT expansion and façade in the youth centre: 692,000 euros.
“In the coming year, despite the meanwhile rising interest rate level, lending is once again unavoidable due to the necessary investments,” said treasurer Christine Brunner-Ernst when she presented the planned asset budget for 2023 to the main committee. The reserve will be around 18 million euros by the end of 2022. Brunner-Ernst expects a deficit of 23.2 million on revenues of 21.5 million and expenses of 44.7 million, which is up 15% compared to the ‘last year. To cover this deficit, take 14 million from the reserve and borrow 9.2 million. But that’s not all: another 21.5 million loans will be needed in 2024, which will reach 79.8 million euros by 2026, calculates Brunner-Ernst. Although it receives grants for the major event, the City must make financial advances for the state gardens show. “The funds are always paid later,” observed the treasurer. In terms of possible savings, the city administration has cut back on the renovation of the railway station, the community center and the Smart City project.
If interest rates remain high, a larger share is drawn from the reserve
Mayor Maximilian Böltl (CSU) commented on some points. “Now we are stopping at the digital twin of the Smart City project and everything is in preparation for the community center until the planning application. The financial situation will decide how and when we continue, whether in 2026 or 2027.” The conversion of Pfarrer-Caspar-Mayr-Platz is simply necessary, the road surface is very bad due to the many trucks and buses. Converting to LED street lighting is expensive, but the municipality saves more than €75,000 in electricity every year, said Böltl. Given the situation of high interest rates, “driving by sight”, interest rates will remain high and more will be drawn from reserves. If they sink, “let’s take another loan.”
Marcel Proffert (VFW) did not want to accept the plan: “I consider the purchase of the condominium for more than four million euros superfluous and the debt increases by 23 million euros”. the balance sheet against his vote.
More news from Kirchheim and the Munich district can be found here.
